Complex Commercial Collection Checklist
A commercial collection case can turn complex for numerous reasons, many relating to the documents required to prove a claim or disprove a counterclaim. Effective commercial collection requires mustering all relevant facts and documents before proceeding, thus combating two of a debtor’s most effective tactics: confusion and delay.
Knowing from inception that a commercial collection case is complex helps in developing an effective and aggressive strategy. Some indications of complexity are:
- The account is filled with charges, payments, deductions and chargebacks, making it difficult to determine what has been paid and what is being disputed
- Documents show conflicting terms
- The debtor has asserted numerous types of offsets to the amount owed
- The debtor claims misapplied payments
- The debtor argues that the amounts claimed are too old for it have accurate records
- The debtor alleges poor performance only when all work has been completed
- The debtor claims its former employee made unauthorized promises
- The debtor claims your former employee made promises for which you have no record or which were beyond his or her authority
- The debtor claims an unusually high number of defective products
- The debtor claims an unusually high number of shipping errors
- The debtor has withheld parts of payments without explanation or with vague or erroneous explanations
- The debtor attempts to justify its failure to pay by asserting that competitors received more favorable terms
- The debtor demands unreasonable amounts as offsets for allegedly poor performance or nonperformance
- The debtor alleges late performance when performance was timely or when any delay was due to the debtor’s own failure
- The debtor argues it cannot pay because the debt was incurred in a now closed accounting period
Call Stephen R. Leibowitz Law Offices
to find out how we can help you.
Phone: (610) 832-7447
Fax: (610) 832-7460
Email: info@srl-law.com